ULTIM GROUP
2023
Generation spanning, cross market
solutions for private, public and
institutional clients.
ULTIM GROUP
ULTIM GROUP
Welcome to UTG,
Your specialised advisory for
asset protection & securitization.
Ultim Group provides individual asset protection
and securitization solutions for private-, public-
& institutional clients.
This publication will outline the Ultim Asset Protection
Methodology, its application to todays securitization
tasks and modern underwriting instruments.
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Why wealth securitization?
Wealth securitization is a process of transforming assets
into tradable securities, allowing for greater liquidity and
flexibility in their use. This technique is often used in the
formation of Asset Protection Trusts, where assets are
pledged to a special purpose vehicle. This Trust is a
unique format of a Trust that protects the assets from
any potential creditor claims. The receivables from this
Trust can be directed towards any beneficiary, such as a
financial instrument like a Protection Certificate.
The pledged assets within this structure can be valued and
insured, which can be used for refinancing purposes
against intangible assets that are not immediately liquid.
These advantages provide greater flexibility and security for
individuals or businesses seeking to protect and manage
their assets effectively.
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Asset securitization and capital refinance
Ultim Group is a principal advisory that assists clients in
developing sustainable solutions for their wealth management and
expansion needs. One of the methods Ultim uses is called "Asset
Securitization." In this approach, Ultim works with the client to
consolidate physical and monetary assets into Special Purpose
Vehicles (SPVs), licenses and IP into concession companies
(License Boxes), and financial instruments into a self-securing
underwriting entity called the "Guarantee SPV."
Unlike traditional Hedge-Fund or LBO approaches, Asset Protection
methodology employs different, also cross-national SPVs in a
synchronized transaction, allowing for greater flexibility. This form of
Asset-Securitization is a flexible method for the activation of passive
assets while using the protection funds' emission vehicle to enter
capital refinance.
With Asset Protection methodology, several assets from
different classes can be consolidated and fully reflected within
one holistic financial instrument, such as a Corporate Bond,
Protection Certificate, or Security Token. At the end, the
insured financial instruments, not the assets themselves,
represent the portfolio towards the financial market.
Assets securitized under the Asset Protection methodology
will never be exposed to risk and remain independent from
market indices and benchmarks, while an already rated
Insurance instrument takes their place. Overall, Asset
Protection methodology is a flexible and secure approach for
individuals or businesses seeking to manage and protect their
assets effectively.
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The Securitization advantage
UTG provides:
• Portfolio consolidation and securitization through SPV companies.
• Brokering a wide range of credit insurance instruments.
• Arrangement of ABS/MBS securities for asset securitization in trusts.
• Operates as execution only Advisory for Conventional Instruments,
IPO/MBP/LBO, Corporate Debt & Tokenized Solutions
• Support in the qualification and creation of all necessary concession
subjects for structured finance, STO and IPO
Appropriately named the "Asset Protection" methodology, it serves as
the flagship solution offered by the Ultim group of companies, acting as
your Principal Advisor. The Asset Protection approach ensures long-
lasting security and adheres to the stability and compliance criteria set
forth by financial regulators. As a result, the Protection Fund is the
preferred instrument for private offices, foundations, funds, and central
banks.
In the financial realm, the Ultim Wealth Protection and Asset Securi-
tization model stands in a league of its own. This innovative approach
allows pledged assets to consist of up to 85% intangibles, while
providing unparalleled security in the market. Each asset secured
within an Asset Protection underwriting mechanism can be insured
by an "A" rated insurance instrument from Lloyds, BMI, Qatar-Re, or
Cedent. Additionally, these assets can be held within a generation-
spanning wealth management vehicle, which can act as both a
guarantor and facilitator, connecting with the financial industry in
various ways.
Through a strategic structure of special purpose vehicles, the protected
wealth can be used for expansion and growth in clients' businesses in the
form of structured instruments, such as guarantee certificates or highly-
rated debt instruments. This self-securing concept is a direct response to
lessons learned from recent financial crises and is an ideal medium for
pension funds and public finance agencies seeking to protect assets and
maintain stability..
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Creating a Consolidated Portfolio
with Capital Protection
Ultim is helping clients in the
consolidation of their portfolio. As part of
our mandate, ultim can arrange rating
and activation of assets depending on
the clients perceptions. Assets of
different classes will be destilled into
securities and represented through a
bankable instrument as capital on the
clients audited balance sheets.
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Overlay
Management
Real Estate &
other fixed
income Assets
Securties,
Digital Assets,
Derivatives
Currencies,
Futures, Gems
Patents,
Stakeholdings,
Industry
participations
Capital Protection Instrument
ULTIM GROUP
Advantages of Creating a consolidated
portfolio with Capital Protection
Large portfolios - if not properly managed
may rarely perform returns if not exposed to
risk. With the protection trust methodology, a
portfolio remains protected, liquid and
performing. A Protection Trust owner
remains always in control of his portfolio and
can operate independent from institutional
support
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Fixed Income
Tax Burden
Cash Positions
Securities
Interest
Payments
Total Portfolio
Performance
Asset Fundament
Overlay Management
Insurance Instrument
Liquidity
ULTIM GROUP
Client Profile:
The client holds a portfolio of real estate, with a leverage model
based on real estate project development. To finance or secure
projects, the client utilizes external finance and a midterm exit
strategy. The majority of their capital is tied up in real estate, and a
certain percentage must provide debt service. Including liabilities,
the portfolio's ROI exceeds 5% per annum.
Leverage Model Involving Conventional Debt Financing:
The client establishes a Special Purpose Vehicle (SPV) company to
hold the future project development. They enter into a relationship
with a bank to secure financing. As the project developer, the client
must provide collateral from their real estate portfolio. The bank
conducts thorough due diligence on the project and collateral
assets. A qualified exit strategy is advantageous, and a potential
exit-buyer or tenant is a crucial aspect of due diligence.
After this process, the bank uses the real estate as collateral,
potentially placing an entry in the land register or requesting a title
on charge on land. This creates an encumbrance on the real estate
portfolio. Moreover, the bank requires a significant amount of
equity (often a minimum of 30% of the facility's face value).
Disadvantages of Debt-Based Models:
→ Higher overall financing costs and charges on the
collateral.Encumbrances on the real estate make the
portfolio less flexible.
→ The investment may not achieve expected returns.
→ The financing volume may be insufficient.
→ In a critical scenario, encumbered assets could hinder
other developments due to one distressed project,
increasing the risk of default caused by temporary
illiquidity.
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B Portfolio Management and expansion
using the asset protection trust:
Securitized Assets Model:
In comparison, a securitized assets model provides more flexibility
for the client. By utilizing the Ultim Wealth Protection and Asset
Securitization model, the client can achieve better security without
the encumbrances associated with conventional debt financing.
The assets can be insured by an "A" rated insurance instrument,
and the protected wealth can be used for expansion and growth in
the form of structured instruments, such as guarantee certificates
or highly-rated debt instruments.
In conclusion, a securitized assets model provides more
advantages and flexibility for the client than conventional debt
financing, particularly when managing a real estate portfolio. The
Ultim Wealth Protection and Asset Securitization model allows for
better security and growth potential while minimizing the risks and
encumbrances associated with traditional debt-based models.
Advantages of Securitized Assets Model:
→ Lower financing costs compared to conventional debt financing.
→ Greater flexibility in the real estate portfolio due to fewer
encumbrances.
→ Enhanced potential to achieve expected returns on investment.
→ More suitable financing volume tailored to the client's needs.
→ Reduced risk of default caused by temporary illiquidity in a
critical scenario.
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P
T
Protection Trust
Financial Services SPV
Concession SPV
Industry or Asset
Holding SPV
Guarantee SPV
Asset SPV 01
Asset SPV 02
Asset SPV 03
Protection Certificate
Cash Assets
Credit Enhancement
Concessions &
Licenses
Protection Trust SPV roles and
Asset Securitization Structure
This SPV will than be positioned in a
specific capital market. Oposite to this
structure, the protection fund concept is
distributing the elements of a
securitization structure into Different
entities, allowing the individual placement
or protection of essential asset classes,
while a strong protection instrument is
covering the whole transaction. Therefore
the Security will be placed in a dedicated
SPV, that becomes the underwriter for all
other entities within this converging
transaction.
In a classic securitzation scenario, more than one
SPV will be incorporated that will receive
underwriting and creditenhancement without a
strong protection component.
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The Ultim approach of the capital protection trust is a worldwide
acknowledged methodology for commercial and institutional
portfolio securitization.
Based in England, Switzerland, the UAE, Hong Kong and the
USA, Ultim can be understood as an international structuring
partner and advisory firm for Institutional Clients, High
Networth Individulas, Government-Agencies and Banks
covering the total process of Securitization and generation
spanning – grows oriented – Asset Management and Asset
protection.
Ultim‘s structured fiance division operates as the leading
entity within the Ultim Group of companies at the structuring
partner for securitization operations and „ Bankable Securi-
ties“ and is interfacing the regulated financial markets as a
submission agent for the registration of securities and
financial insurance istruments.
The Ultim Asset Management model is based on the establishment
of a consolidated Addet fundament, backing the overlay
management by providing leverage through (structured) capital
refinance. This serves as an excellent platform for the different
Asset Management strategies, such as Real-Estate-,hedge-fund or
LBO/MBO approaches.
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07.05.2023
Get in touch with our Advisory team to
discuss our approach to a fully
compliant Asset Management concept
that is more digistible for banks.
clients@ultim.group
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